Indirect Taxes in Indonesia

E-Commerce Tax in Indonesia

Non-resident suppliers of digital services within Indonesia can now be appointed as VAT collectors. As such, are now required to collect 11 percent VAT and pay to the Indonesian government.

The following utilization of intangible goods will now be subject to VAT:

  • The use of or right to exercise the copyright in the field of literature, art or scientific work, patent, design or model, plan, secret formula or process, trademark, or other forms of intellectual property right, industrial property right, or other similar rights;
  • The utilization or right to use industrial, commercial, or scientific tools/equipment;
  • Utilization of knowledge or information obtained from the scientific, technical, industrial, or commercial sectors;
  • The use of additional or complementary assistance in the utilization or right to exercise the right as referred to in point (1), the utilization or right to use the tools/equipment as referred to in point (2), or provision of knowledge or information as referred to in point (3);
  • The use of or the right to use motion picture films, films, or video tapes for television broadcasting, or sound tapes for radio broadcasts; and
  • The acquisition of all or part of the rights relating to the use or granting of intellectual property rights, industrial property rights, or other rights as referred to in the above-mentioned points.
  • The utilization of intangible taxable goods also includes the utilization of digital goods.

The government recognizes the following e-commerce entities based on their activities:

  • Merchants (sellers): Businesses or individuals that conduct electronic offerings through electronic systems either managed or owned by themselves or through an e-commerce organizer.
  • E-commerce organizers (PPMSE): Businesses or individuals that provide electronic systems to facilitate e-commerce transactions. These include business models, such as online streaming platforms, online marketplaces, online classified advertisements, and price comparison platforms, among others.
  • Intermediary Service Organizers (PSP): These are businesses or individuals that provide search system facilities (for example, Google, Bing) or those that provide information storage services (hosting and caching).

The aforementioned entities can be either domestic or foreign businesses and the legal requirements for each type will also differ.

Domestic merchants

Domestic merchants must obtain a business license from the government’s Online Single Submission (OSS) Agency. Under the country’s Standard Classification of Business Fields, businesses carrying out trading via the Internet need to comply with KBLI classification 4791.  

Domestic e-commerce organizers

Businesses that operate their own e-commerce facilities are classified as PPMSEs and must obtain a special license named Surat Izin Usaha Perdagangan melalui Sistem Elektronik (business license for trading through an electronic system (SIUPMSE).

The SIUPMSE can be applied through the OSS system and businesses will need to adhere to certain criteria to be eligible. These are:

  • Obtaining an Electronic System Provider certificate within 14 days after the SIUPMSE is issued;
  • Must provide a website and/or application name to the government;
  • Must establish a consumer complaints section on their website/application, which includes an e-mail address and contact number in addition to the details of the Directorate-General of Consumer Protection and Trade Compliance;
  • The PPMSE must provide facilities that inform or link customers to the OSS Agency’s website; and
  • The business must submit its transaction data (subscribers, payments, complaints, contracts, shipments etc.) to Statistics Indonesia (BPS), the government agency responsible for conducting statistical surveys.

Foreign merchants

Foreign merchants must provide a valid business license issued in the country where they are established to the domestic PPSME company which provides their electronic communication facilities. The domestic PPSME will then need to report all the transactional activities (subscribers, payments, complaints, contracts, shipments, etc.) of the foreign merchant to the BPS.

Foreign e-commerce organizers

Foreign PPSMEs that have been appointed as ‘VAT collectors’ by the Ministry of Finance are obligated to charge the 11 percent VAT rate on the sales of digital products to Indonesian consumers.

They must first have local transaction values of the following:

  • The PPSME has completed transactions with Indonesian consumers that exceed 600 million rupiahs (US$38,687) in a year or 50 million rupiahs (US$3,224) per month; or
  • Traffic or visitors to the e-commerce site exceeds 12,000 users per year or 1,000 users per month.

Luxury-Goods Sales Tax

Importing certain manufactured taxable goods may be liable to luxury-goods sales tax (LST). LST must be accounted for every month together with VAT.

A summary of the LST rates is set out below.

Luxury-Goods Sales Tax in Indonesia


LST rates (%)










Luxury residences such as luxury homes, townhouses, condominiums, apartments, etc




Dirigibles, balloons, and other non-powered aircraft




Firearms and other arms, except for state purposes





Aircraft other than those for state or commercial air transport purposes




Luxury cruisers, except for the need of the state and public transport as well as yachts for tourism




Motor vehicles









Stamp duty

Individuals, companies, and other organizations in Indonesia must pay stamp duties on certain legal documents. The standard stamp duty tax rate is 10,000 rupiah (US$0.64).

Important Tip
Indonesia requires stamp duties on two main types of documents: documents created to explain events of a civil nature and documents to be used as evidence in a court of law.

Documents of a civil nature include the following:

  • Agreements, certificates, statement letters, and similar documents and their copies;
  • Notarial deeds and executorial deeds (grosse) and their copies;
  • Deeds made before a land deed officer (also known as a land conveyance officer) and their copies;
  • Securities in any form and name; and
  • Documents stating a sum of money above 5,000,000 rupiah (US$321), describe the receipt of money or contain an acknowledgment of debt payment or settlement, either entirely or partially.

In addition to these documents, the Law also applies to the following civil documents:

  • Securities transaction documents, including futures contract transactions in any name or form;
  • Auction documents in the form of excerpts, minutes, copies, and minutes of auction executorial deeds (grosse); and
  • Other documents stipulated by Government Regulation.

The Law exempts the following documents from stamp duty:

  • Land transfer and building rights documents used for handling and restoring social conditions following natural disasters;
  • Land transfer and building rights documents used solely for religious or non-commercial activities;
  • Documents relating to the implementation of government programs and monetary or financial policies; and
  • Documents relating to the implementation of international agreements under binding international treaties or reciprocal laws.

Electronic stamp duty

Electronic stamps, which carry a unique code and description, apply to electronic transaction documents with a value above 5,000,000 rupiah (US$321).

The Indonesian government, however, is still building the infrastructure to manage electronic stamp duties.


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